Stocks bounce from rout ahead of central bank meetings

Tue Jan 28, 2014 12:50pm EST
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By Rodrigo Campos

NEW YORK (Reuters) - Stock markets steadied on Tuesday after three days of intense selling as investors waited to see if Turkey, one of the epicenters of the recent rout, would hike interest rates to defend its battered lira.

Investors have been shaken this week as jitters about the withdrawal of U.S. monetary stimulus and slowing Chinese growth have amplified country-specific political turmoil, from Turkey to Thailand to Argentina.

The Federal Reserve will start a two-day meeting on Tuesday, after which it is expected to slice another $10 billion off the $75 billion it currently spends each month on buying bonds to support the U.S. economy.

Wall Street stocks were trading higher despite a slide in Apple shares a day after the largest U.S. company by market value reported quarterly earnings.

"Emerging markets are doing poorly and that brings you back to the U.S. stock market and that's why you are seeing buyers come in, with the thought the selloff was an opportunity to re-establish positions," said Rick Meckler, president of investment firm LibertyView Capital Management in Jersey City, New Jersey.

"I don't think there will be (contagion) absent something much more material to the investing thesis around the world."

The Dow Jones industrial average .DJI rose 77.06 points, or 0.49 percent, to 15,914.94, the S&P 500 .SPX gained 8.63 points, or 0.48 percent, to 1,790.19 and the Nasdaq Composite .IXIC dropped 1.255 points, or 0.03 percent, to 4,082.354.

Asian equities outside Japan steadied and European shares .FTEU3 were up the most in nine sessions. A gauge of global equities .MIWD00000PUS was up 0.3 percent.   Continued...

People walk past an electronic information board at the London Stock Exchange in the City of London October 11, 2013. REUTERS/Stefan Wermuth